Sabanour Mining and Industrial Development Company is currently the largest
iron ore producer in the northwest of Iran. The company’s products until
recent years included granulated iron ore and concentrate but now the pellet
production is also included in the product portfolio of this company. The
company’s vision for the year 1400 (2021/22) is the production of high value
added products with better quality, including iron ore extraction of 4
million tons per year, and production of 2 million tons of concentrate and
pellet each, annually.

Mohammad Kalantari, the Managing Director of Sabanour Mining and Industrial
Development Company, who in the past was the secretary of the board of
directors of Iranian Mines and Mining Industries Development and Renovation
Organization (IMIDRO), has already introduced new changes with regard to the
company’s development. He considers creation of diversity in the company’s
portfolio, carrying out exploration activities and also implementing the
1.5-million-ton pellet project as the projects underway in the company.
According to him, the 50-million-euro pelletizing project is one of the most
important projects of the company.

As for the last year performance of Sabanour, Kalantari referred to the fact
that the company has currently three mines with about 100 million tons of
definite iron ore reserves. He said: “Last year, we produced 1.5 million
tons of iron ore, of which 1.1 million tons of concentrate was produced. One
million tons of this output was exported to overseas markets.” He added:
“Last year, the company also produced nearly 112,000 tons of pellets, and in
the New Year’s plan, iron ore production will reach 2.5 million tons, iron
ore concentrate 1.5 million tons and pellet 480,000 tons.” He stressed that
if the environmental license of Shahrak Mine in Kurdestan Province is
obtained, the extraction permit will increase from the present 750,000 tons
to 2 million tons. Kalantari, while commenting on Sabanour production
outlook, said in the 2021 perspective production capacity of Sabanour
Company will reach 2 million tons in pellet, 2 million tons in concentrate
and 4 million tons in iron ore.

Portfolio Development

He pointed to the portfolio development as one of the ongoing plans and said
in this plan, in addition to the iron ore, the company will reach
exploration and production of lead, zinc, copper and gold.

He added: “Currently, in the area of
​​Ravar
(Kerman Province) 1,200 square kilometers are under exploratory activities
as there are potential deposits of zinc, lead, iron, coal and sedimentary
copper.

Mine Purchase Plan

He emphasized: “In the future plans of the company exploration operations
will be expanded around the existing mines and the plan for purchasing mines
will be conducted through negotiations. In fact, we are considering
increasing the reserves of the existing mines with new discoveries.”

HSE

Referring to the fact that Sabanour has recently formed the independent HSE
unit, Kalantari said: “There was no such an independent unit in the company
before, but now in the central office, a separate and independent management
unit for the implementation of projects and the necessary standards in the
area of
​​health,
safety and environment has been established. As for the IT and the training,
we also have new programs and will develop these units.” He emphasized: “We
professionally implement and follow up HSE programs in three mines, two
concentrate factories and an iron ore pellet factory. In the field of
software, we are also upgrading the old systems. There was no training
section in the company in the past, but currently with the establishment of
the relevant unit, both domestic and international trainings will be
implemented simultaneously.”

Financial Resources of Pelletizing Project

He referred to the development plan of the 1.5-million-ton pellet project as
one of the most prominent programs on the agenda of Sabanour and stressed:
“On behalf of the Ministry of Industry, Mine and Trade, IMIDRO and Mining
and Metals Development Holding (a shareholder of Sabanour Company) we have
been requested to establish a 1.5-million-ton pelletizing plant in Kurdestan
Province. A total of 50 million euros will be invested in this project.” He
added that the consultant of the plan has been recently chosen and the
contractor will be selected as well. Sabanour CEO noted: “Finally, in order
to fund the plan we will seek help from the National Development Fund. But
now we are preparing and finalizing a bankable feasibility study.” In
conclusion, he stated that in fact, pelletizing is one of the most important
projects in the Bijar region of Kurdestan, based on which in the 2021
Horizon Plan, by taking the present factory into account, production
capacity of pellets will reach 2 million tons.

Commenting on the development and increase of production in Sabanour in the
current calendar year of 1397 (2018/19), Kalantari said: “By the end of 1396
(2017/18), Sabanour produced 1.5 million tons of granulated iron ore, 1.1
million tons of iron ore concentrate and, 140,000 tons of pellets. The
company’s program for the current year is to increase productivity and
production of iron ore to 2.5 million tons and iron ore concentrate to 1.5
million tons. We also plan to increase pellet production to 500,000 tons.”

Sabanour intends to launch the new 1.5-million-ton pellet project in the
Bijar region of Kurdestan in 1397, and it is expected that the project with
regard to the planning made, to become operational in 1400. Also, in the
case of obtaining environmental permits, the operation permit of Bijar iron
ore mine will be issued and in that case, extraction of this mine will
increase from 750,000 tons to 2 million tons.

In line with developing investments in the mining sector and diversifying
the product portfolio, the company has recently expanded its investment and
considering the operational activities in the exploration zone of Ravar,
Kerman (1200 square kilometers) with lead and zinc potential, it has put
investment in other basic metals, especially copper and gold, on its agenda.

In 1396, Sabanour exported about one million tons (90 percent) of its
concentrate output. One of the important plans of the company in the current
year is development of detailed exploration (drilling) around its mines in
the provinces of Kurdestan and Hamedan, which is hoped the definite and
approximate reserves will have significant increase.

In Sabanour Mining and Industrial Development Company, with an aim of
increasing productivity and production, three sections of safety, health and
environment, IT and training have been established which need to be
strengthened for the organizational excellence.